First, I've spent about 24hrs on this one problem. More than my whole return. Also spent over 6hrs with multiple live agents with no success.
Issue: Sold house in FL with ~$132k gain in Aug. Moved to VA in Sep (no income). TurboTax calculates that I owe $6k in VA state tax (though I have 0 income allocated to VA).
When allocating income/deductions in VA state return I enter 0 for the $132k Capital Gains and 0 for 'Fixed date conformity subtraction' of $113k. Looking at the printed VA returns (760PY and Schedule of Income), I can see that TT pulls in -113k (neg) to Column A1 Line 8 of the Schedule of Income, which eventually leads to a VA AGI of 113k (though I have zero).
Here's the short math...
VA AGI (113k) = Fed AGI (132k) - Income Outside VA (19k)
Income Outside VA (19k) = Fed AGI (132k) + 'Net fixed date conformity modifications' (-113k)
When I check the printed VA state return to see where the -113k is coming from, I find two documents 'Federal/State Adjustment Summary' and 'Activity Worksheet' (for the rental property I sold). I don't quite understand the TT forms, but there is an Asset Disposition table and the residential line makes up most of the -113k. Specifically, Federal Gain/Loss (C) 87k and Gain Adjustment (E) -89k, and Total Adjustment(G) of -83k. There are also adjustments for Roof -6k (remaining depreciation) and Passive/At-Risk/Other -21k (land). There is also a -3k depreciation adjustment included in AGI. These all total to the -113k that gets pulled in VA state return.
Three possible scenarios...
1. I didn't enter my property sale correctly (though I think I did).
2. VA is correctly taxing me on the sale of FL property and I owe VA a bunch of taxes (not fair!).
3. There is a bug with TT, specifically the negative gain adjustment that's being pulled into VA state return. Ideally, this number would be 0.
Help please :(
